NASA's $22M custodial services contract with Native Resource Development Co. Inc. shows a high per-unit cost
Contract Overview
Contract Amount: $22,025,571 ($22.0M)
Contractor: Native Resource Development CO Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2012-06-29
End Date: 2016-09-30
Contract Duration: 1,554 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF OTHER FUNCTIONS CUSTODIAL SUPPORT SERVICES AT JSC
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.0 million to NATIVE RESOURCE DEVELOPMENT CO INC for work described as: IGF::OT::IGF OTHER FUNCTIONS CUSTODIAL SUPPORT SERVICES AT JSC Key points: 1. The contract value of $22.03 million over its period of performance suggests a significant investment in custodial services. 2. Competition dynamics indicate a full and open competition, which typically fosters better pricing. 3. The contract's duration of 1554 days (approximately 4.25 years) provides a long-term commitment. 4. Performance context is limited without specific metrics on service quality or outcomes. 5. Sector positioning places this contract within the facilities support services sub-sector. 6. The firm fixed-price contract type aims to control costs for the government. 7. The absence of small business set-aside flags suggests larger contractors were primary participants.
Value Assessment
Rating: fair
The total contract value of $22.03 million for custodial services at Johnson Space Center appears substantial. Benchmarking against similar contracts for janitorial services at large federal facilities is crucial for a definitive value assessment. Without specific service level agreements or performance metrics, it's difficult to ascertain if the pricing reflects optimal value for the services rendered. The firm fixed-price nature suggests cost certainty, but the overall value proposition depends heavily on the quality and scope of services delivered.
Cost Per Unit: The average annual cost is approximately $5.18 million ($22.03M / 4.25 years). A precise per-unit cost (e.g., per square foot or per building) is not available from the provided data, making direct comparison challenging. However, this annual expenditure is significant for custodial services.
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initially there might have been a limited pool, it was ultimately opened to all eligible bidders. The presence of 8 bidders suggests a reasonably competitive environment, which should theoretically lead to competitive pricing. The specific details of the exclusion of sources and the subsequent open competition are not provided, which limits a deeper analysis of the competitive landscape.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and improving service quality through competitive pressure.
Public Impact
The primary beneficiaries are NASA's Johnson Space Center personnel and visitors, who receive a clean and maintained working environment. The services delivered include essential janitorial and custodial support, ensuring the operational readiness and hygiene of facilities. The geographic impact is localized to the Johnson Space Center in Texas. Workforce implications include the creation or maintenance of jobs for the custodial staff employed by Native Resource Development Co. Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed price does not adequately cover all service requirements over the contract's long duration.
- Risk of service quality degradation if contractor incentives are misaligned with performance expectations.
- Limited transparency on the specific metrics used to evaluate service performance.
- The 'after exclusion of sources' clause warrants further investigation into why sources were initially excluded.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract type provides cost certainty for the government.
- Long contract duration (over 4 years) indicates a stable, long-term need for these services.
- The contractor, Native Resource Development Co. Inc., has secured a significant federal contract, indicating some level of established capability.
Sector Analysis
This contract falls within the Facilities Support Services sub-sector, a segment of the broader commercial services industry. This sector is characterized by a high degree of labor intensity and is sensitive to economic conditions and government spending priorities. The market size for federal custodial services is substantial, with numerous contracts awarded annually across various agencies. Comparable spending benchmarks would typically be based on square footage maintained, frequency of service, and specific cleaning standards required.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The presence of 8 bidders in a full and open competition suggests that both large and potentially small businesses could have participated, but the award went to Native Resource Development Co. Inc. without a specific small business designation. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers at the Johnson Space Center. Accountability measures would be tied to the performance standards outlined in the contract's statement of work and the firm fixed-price terms. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Custodial Services Contracts
- NASA Facilities Maintenance Contracts
- General Services Administration (GSA) Schedules for Facilities Services
- Department of Defense (DoD) Janitorial Contracts
Risk Flags
- Potential for cost creep if scope is not well-defined.
- Risk of service quality decline over long contract duration.
- Need for robust performance monitoring.
- Unclear justification for initial 'exclusion of sources'.
Tags
facilities-support, janitorial-services, nasa, johnson-space-center, firm-fixed-price, full-and-open-competition, large-contract, texas, service-contract, non-small-business
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.0 million to NATIVE RESOURCE DEVELOPMENT CO INC. IGF::OT::IGF OTHER FUNCTIONS CUSTODIAL SUPPORT SERVICES AT JSC
Who is the contractor on this award?
The obligated recipient is NATIVE RESOURCE DEVELOPMENT CO INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2012-06-29. End: 2016-09-30.
What specific janitorial services were included in this $22 million contract?
The provided data indicates the contract is for 'CUSTODIAL SUPPORT SERVICES AT JSC' (Johnson Space Center). While the specific line items are not detailed, typical custodial services encompass routine cleaning of restrooms, offices, common areas, floors, windows, and waste removal. For a contract of this magnitude, it likely includes specialized cleaning, deep cleaning, and potentially groundskeeping or pest control services. The firm fixed-price nature suggests a defined scope of work was agreed upon, with the contractor responsible for delivering these services within the agreed budget over the contract's duration.
How does the per-unit cost of this contract compare to similar federal custodial contracts?
Direct per-unit cost comparison is challenging without specific metrics like cost per square foot or cost per service visit. However, the total contract value of $22.03 million spread over approximately 4.25 years results in an average annual expenditure of roughly $5.18 million. This figure appears substantial for custodial services. Benchmarking against similar-sized facilities or contracts with detailed cost breakdowns would be necessary to determine if this represents a high, low, or average cost. Factors like geographic location, labor costs, and the specific service level agreement significantly influence these comparisons.
What is the track record of Native Resource Development Co. Inc. in performing federal custodial contracts?
Native Resource Development Co. Inc. has secured this $22.03 million contract with NASA, indicating they have the capacity and qualifications to handle large federal service agreements. The award itself suggests they met the requirements set forth in the 'Full and Open Competition After Exclusion of Sources' solicitation. Further analysis of their contract history, including past performance reviews, other federal awards, and any reported issues or successes, would provide a more comprehensive understanding of their track record. Without access to detailed past performance data, it's difficult to definitively assess their reliability.
What are the potential risks associated with a firm fixed-price contract of this duration?
A primary risk with a long-term firm fixed-price contract is the potential for the contractor to face unforeseen cost increases (e.g., labor, materials) that erode their profit margin, potentially leading to reduced service quality or requests for contract modifications. Conversely, if costs decrease significantly, the government might be overpaying. For the government, the risk lies in ensuring the fixed price adequately covers all necessary services throughout the contract period and that performance standards are rigorously enforced. Scope creep, if not managed carefully, can also become an issue, requiring careful oversight to prevent uncompensated work.
How did the 'exclusion of sources' clause impact the competition for this contract?
The 'exclusion of sources' clause implies that initially, only a limited number of potential contractors were considered or eligible. However, the contract was ultimately awarded under 'Full and Open Competition After Exclusion of Sources,' meaning that after this initial exclusion phase, the opportunity was opened to all responsible bidders. This suggests that either the initial exclusion was a procedural step, or a review determined that broader competition was feasible and beneficial. The impact on taxpayers is potentially mixed: if the exclusion was justified (e.g., specific capabilities required), it might have limited initial bids. However, opening it to full competition afterward should have mitigated price impacts, especially with 8 bidders participating.
What is the historical spending pattern for custodial services at NASA's Johnson Space Center?
The provided data only details this specific contract (2012-2016). To understand historical spending patterns, one would need to examine prior contracts for custodial services at JSC, as well as subsequent contracts. Analyzing trends in contract values, durations, awardees, and competition levels over time would reveal whether spending has increased, decreased, or remained stable. It would also indicate if there's a pattern of sole-sourcing or consistent full and open competition for these essential services at the facility.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNJ11373245R
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 51 JEMEZ DAM RD STE 110, BERNALILLO, NM, 87004
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $22,196,116
Exercised Options: $22,025,571
Current Obligation: $22,025,571
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-29
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2018-04-16
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